Earnings Analysis : Slight Revenue Growth and EPS Beat (In Line with Market Expectations)
๐ Earning Summary
- Revenue grew 2.5% YoY, driven by higher oil/gas prices and expanded refining operations.
- EPS decreased 34.1% YoY but delivered a solid result by beating consensus by 18.4%.
๐ Core Strategy
- LNG Expansion: Plans to account for approximately 5-15% of U.S. LNG exports through the Golden Pass project, with FIDs for Papua New Guinea and Mozambique pursued within the year.
- Permian Basin Production Expansion: Scaling production to 1.8 million barrels per day by 2026 to secure energy supply dominance.
- CCS and Low-Carbon Solutions: Planning to add 4 million tons of annual CO2 capture capacity and reviewing gas + CCS power supply for data centers.
๐ฏ Guidance
Medium-to-long-term profitability will be strengthened through production expansion in core growth drivers such as LNG and the Permian Basin. In particular, entry into the power supply market for hyperscale data centers is expected to be a new opportunity for legacy energy companies.
๐ฌ Earnig Call Q&A
Q: What was the impact of Middle East unrest on the results?
A: It contributed to higher crude oil prices, but there were some offsetting effects in logistics and operations. Trading unwind effects were also included.
Q: What is the contingency plan in case of crude oil export bans?
A: We are aware of the risk that crude oil and associated gas production could be shut-in and are responding closely to policy changes.
A: It contributed to higher crude oil prices, but there were some offsetting effects in logistics and operations. Trading unwind effects were also included.
Q: What is the contingency plan in case of crude oil export bans?
A: We are aware of the risk that crude oil and associated gas production could be shut-in and are responding closely to policy changes.
๐ก Plan B Insight
As seen in the recent blockade of the Strait of Hormuz, energy hegemony remains critical. To meet the surge in energy demand from AI and data centers, legacy energy demand is expected to remain robust.